Help on way for state fruit growers

By Hailee Sattavara

Published
7:15 am EDT, Saturday, June 30, 2012

The damage to this year’s fruit crops in Michigan has been disastrous, but help is on the way.

Michigan fruit growers and processors will have an opportunity to alleviate some of their losses after Gov. Rick Snyder signed the Agricultural Disaster Loan Origination Program Act of 2012. After late winter and spring damage, the act will make low-interest loans available to growers up to $1 million.

Leaman’s Green Applebarn and Cider Mill of Freeland, 7475 N. River Road, are predicting a harvest between five and 10 percent of their usual crop.

But co-owner John Leaman is not discouraged as some trees may ripen early and Leaman’s still plans to open officially the weekend after Labor Day.

He said it’s interesting to see which trees were hit by the harsh weather. Some trees have a few apples or none, while others have a fair amount.

Leaman is looking into the relief presented by Snyder.

“What we’re trying to do is consider our options,” he said.

As detailed in the public act: “The purpose of the project is to provide financial assistance to the agricultural sector of this state’s economy and to alleviate financial distress caused by crop damage and related economic impacts through the program.”

To qualify, farm owners, operators and processors must have sustained at least a loss of 25 percent in major enterprises, or a production loss of more than 50 percent on a single crop in areas deemed disastrous by the governor.

Loans are slated to be paid back in five years, with the first principal payment not to take place before 24 months from its origination date.

“This is the worst natural disaster to strike Michigan’s agricultural industry in more than 50 years,” Snyder said in a media release. “Agriculture is a key component of our economy and these loans will help keep our fruit farmers afloat until next season.”

The apple industry accounts for $700 to $900 million of Michigan’s economy. The state budgeted $15 million for the total estimated completion cost of the program.

If crop insurance was available and the owner did not purchase it, the amount of the loan will be decreased by 30 percent or by $100,000, whichever amount is less.

Terry Moore owner of Moore Orchards in Midland isn’t planning on applying for aid, but is glad it’s available to those who want it.

“It’s so widespread that it will be interesting to see what happens to future crops,” he said.

GreenStone Farm Credit Services and Huntington Bank are partnering to provide these low-cost disaster relief loans to Michigan fruit producers and processors according to a media release.

“GreenStone and Huntington share a strong commitment to Michigan and its fruit producers, who each year grow and package fruit that families across America make a regular part of their diet,” said Dave Armstrong, GreenStone president and CEO, in a press release.